flyguy89 wrote:meecrob wrote:but the point is that cheaper prices that are gained without an increase in manufacturing efficiencies means someone is getting fucked over.
Not exactly. I'm sure your average Chinese bloke who previously worked poverty wages in the fields but now has a better paying factory job would disagree that he's getting ripped off. As would the consumer who can now affordably purchase the product the factory worker is making.meecrob wrote:America was based on doing things better and more efficiently, not cheaper.
You do realize we absolutely built our manufacturing base off doing things cheaply, right? Late 19th / early 20th century America was basically the China of today.
Speaking of Germany:
Consumer products are still cheap compared to 20 years back.
So are restaurants. However these are often run by foreigners who are willing to work for low salaries.
Meat is dirt cheap. Again: the slaughterhouses employ people from the poor parts of Europe. Several of these people may share a flat provided by the slaughterhouse.
However if I read how much a new railway line costs I wonder what value money still has. Such infrastructure doesn't depend on cheap imports or cheap foreign labour.
Similar properties: Inflation numbers exclude properties, maybe because people always have the option to sleep under a bridge?
Inflating money supply may not affect prices of most products for years. But it shows fast with property prizes.
If properties had to be included in inflation numbers, central banks would have more difficulties in inflating away gambling debts of the super rich investors.
I suppose the more educated people profited from productivity increases the last 20 years, less educated not so much.
Housing markets just went mad. I believe to have observed the following:
Countries with balance of trade deficit get a booming housing market. Add central bank money supply.
Does trade surplus depress housing markets?
I suppose Japan and China suggests no, Germany yes. Or maybe there was simply enough housing in Germany?
Obviously with 0% interest housing markets can't be stable.
What products/ services in which country showed surprising high/ surprising low inflation?